The California based Bitcoin Exchange Coinbase is offering a discount of up to 25 percent for merchant processing fees to those merchants who accept payment for goods and services in bitcoin, announced on Coin Desk today.
Merchants have been handcuffed to large fees to provide processing of credit cards from the financial service providers upward to over 4 percent per transaction. Bitcoin gives merchants who accept payment in bitcoin huge cost savings. The incentive to use bitcoin is that the fee for a transaction with bitcoin is only 1 percent or less to a fraction of a percent compared to 2.5 percent and upward over 4 percent on an average transaction with a credit card.
Coinbase released a statement today that use of bitcoin in payment for merchants reduces fraud and chargeback fees, so why not pass the savings onto the customer and build bitcoin as a payment simultaneously?
Merchants who use Coinbase can set the discount into their menu with the processing from Coinbase. The customer can see the discount on their sales receipt immediately.
The consumer and merchants can benefit from the many services offered in the past few weeks by Coinbase. The US satellite television provider of DISH network has become the largest merchant to sign on to accept bitcoin payments starting this Setpember with Coinbase. REEDS jewelers, a major US-based jewelry and precious stones retailer has also joined Coinbase in the past week.
This national attention to bitcoin as a payment system is building a brand to the public and introducing the majority of people unaware of bitcoin and the savings for both the consumer and the merchant. It also introduces the flexibility to use bitcoin around the globe.
In order to introduce bitcoin and become a part of a payment choice, Coinbase is offering $10 in value of bitcoin to students around the globe in 500 Universities. This project was begun in mid-May. The signups to date are University of Michigan, Berkeley, University of Illinois and the University of Texas in the top four. UCLA and Stanford, NYU are also on the list, along with UC Davis and a couple of other colleges in the top ten.
It follows on the heels of a project started at MIT. The MIT giveaway is limited to 4,528 undergrads, which will receive a $100 worth of bitcoin in the fall. The students at MIT are asked to utilize the new bitcoin cryptocurrency. The objective is to find options for use of it and create an ecosystem in cryptocurrency.